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TMI Blog2023 (8) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... . EX., MYSORE VERSUS ICL SUGARS LTD. [ 2011 (4) TMI 1065 - KARNATAKA HIGH COURT] where it was held that assessing authority has himself extended the benefit to storage tank storing water as a component to main machinery namely, boiler, he ought to have extended the benefit to the storage tanks which are also part of the factory premises, in which the bye-products are stored and thereafter sold as a finished product, no justification to interfere with the orders passed by appellate authority. The said principle was later followed by the Hon ble High Court in the case of SLR Steels Ltd. [ 2012 (9) TMI 169 - KARNATAKA HIGH COURT] and Hindalco Industries Ltd. [ 2012 (11) TMI 201 - KARNATAKA HIGH COURT] - demand set aside - appeal allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e tanks in the manufacturing premises has been settled by the Hon ble High Court of Karnataka in a series of judgments. In support he has referred to the judgments of the Hon ble Karnataka High Court in the case of Commissioner of Central Excise, Mysore Vs. ICL Sugars Ltd. 2011 (271) E.L.T. 360 (Kar.), Commissioner of Central Excise, Bangalore-II Vs. SLR Steels Ltd. - 2012 (280) E.L.T. 176 (Kar.) and Commissioner of Central Excise, Belgaum Vs. Hindalco Industries Ltd. - 2012 (286) E.L.T. 503 (Kar.). Further, he has submitted similar view was also expressed by the Hon ble Madras High Court in the case of Commr. of C. Ex. S.T, Tiruchirapalli Vs. CESTAT, Chennai 2017 (356) E.L.T. 201 (Mad.) and Thiru Arooran Sugars Vs. CESTAT, Chennai - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -2001 in the definition of capital goods the storage tank is inserted. Therefore, for the period anterior to the said amendment the Cenvat credit could not have been given on the inputs used in the manufacture of storage tanks. Even otherwise though the water stored in a storage tank is used in the manufacture of sugar, the syrup and molasses stored in the storage tank are not used in the manufacture of sugar, on the contrary it is derived in the course of manufacture of sugar and therefore the assessee is not entitled to the benefit of Cenvat credit. Though in the definition of Rule 57Q the storage tank was not included, it is clear from the aforesaid definition that the tubes, pipes and fittings thereof used in the factory were included i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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